Overnight futures look like a classic bear flag. This was correcting the heavy selling into the close on Friday. It looks to have broken and then performed a backtest. It may dump from here.
Overnight ES futures looking very bear flagish to me tonight. We also have a full MACD right now, so that may be ready to retrace a bit now. In order to see continued selling this week, we would like to see this breakdown tonight.
Tesla's chart has formed a bearish rising wedge with strong bearish divergence on the RSI, making higher highs in price while making lower highs on the RSI. If this divergence remains, expect this stock to fall in the coming weeks.
I was dissatisfied by the rising wedge I had drawn on my last Tesla chart. I have cleaned it up as a much more sharply rising one with a greater number of contact points. The thesis remains the same: buyer exhaustion with bearish RSI divergence spells downside to come.
Please refer to my previous posts on Bitcoin. I do not trade it. My only interest in it is to observe how its price behaves if the market drops significantly again. I am interested to see if it succumbs to deflationary forces much like I believe gold might. On the daily chart I see a rising wedge (yellow) that may have already broken. It may be trying perform a...
On both the long-term (weekly and monthly) S&P 500 chart and here with the Dow monthly chart, one can see a large megaphone structure or broadening pattern. In both cases, the Fed balance sheet reversal and then repo-induced mania of last year created an overthrow. On the S&P 500 megaphone, this bear market rally culminated in a small overthrow again, but that...
I know a lot of people are bullish on gold because—alongside other precious metals and Bitcoin—it is the obvious play against the expectation of inflation stoked by the vast, worldwide central bank increase in the supply of money. But, there are a few points I want to make. Technicals: I haven't been particularly happy with many of the charts I see people...
The daily chart using Heikin Ashi candles with volatility stops indicates that the trend changed to a downtrend last Thursday. A reasonable move back up would stop out these trending chart indicators, but they can be useful for longer-term trades. For instance, as you can see in the chart, had you traded off of these alone, you would have gone long on March 25th...
The Dow Jones futures, much like the NASDAQ and S&P 500 futures has formed a bearish rising wedge from the March lows. Last Thursday's bloody drawdown broke the index out of this structure, after which it tried to recapture it, which then failed, and a subsequent backtest looks to have failed now as well. This is in keeping with the other major indexes. Any...
Much like the ES and NQ futures that I discussed tonight, the Russell futures may be rolling over as well. With this chart, there are two ways I see to interpret the "bear flag" formed from the March lows. As drawn now, more candles are captured by the lower channel, but to do that the flag has been violated three times, which is a little unorthodox. The other...
Much like ES futures, the NASDAQ futures have formed a massive bearish rising wedge from the March lows. This wedge has an exhaustion overthrow at the end, followed by a breakdown, then a full week's long backtest which has finally failed. If follow through selling takes place next week, I expect this to fall dramatically from these lofty heights. One small...
Beyond Meat, much like Amazon has also created a rising wedge pattern with bearish RSI and MACD divergences, meaning it is making subsequently higher highs with less and less strength. I expect this to fall significantly. Many of the so-called "meme" and other popular stocks have taken on this look.
Amazon has created a soaring rising wedge with bearish RSI and MACD divergence, meaning it is making subsequently higher highs with less and less strength. I expect this to fall significantly.
Microsoft has been in a bearish ascending wedge for the last couple of weeks. It also has bearish divergence on the RSI both between the February high and today and between the high on the 10th of June and today. Notice that Microsoft was also in an ascending wedge before the so-called COVID-19 crash. And also notice that it tried to overshoot that wedge twice,...
The dollar index may have formed an inverse head and shoulders pattern. If it can break that neckline (red), then it may have significant room to run.
As noted previously, the S&P 500 futures had formed a very large bearish rising wedge off the March lows (blue). It *finally* fell from that and performed a backtest, which failed. It may be trying to make a second attempt to test that lower bound. There may also be a long-term channel formed from the February high to the intermediate high made on June the 8th...
Similarly to TSLA, which I covered a few minutes ago, Apple's chart is showing the same bearish pattern and indicator. A bearish rising wedge has formed (red) and there is bearish divergence on the daily RSI, with the price making higher highs while the RSI has made lower highs. This represents buyer exhaustion. (You can ignore the yellow lines. They are...
Though the VIX was down ~2% day, it remains elevated, and importantly, the VVIX (the volatility of volatility) is up today, and looking like it wants to launch itself off of a bull flag structure. For those curious, the VVIX measures "institutional hedging." Anything over 110 is considered worrisome for the markets.